PPG Third Quarter 2015 Net Sales Rise 6%
PPG Industries recently reported third quarter 2015 net sales from continuing operations of $3.87 billion, vs. the prior-year figure of $3.94 billion. Net sales in local currencies increased by 6%, or approximately $250 million, year-over-year, which included a 7% contribution from acquisition-related sales offset by lower sales volume of less than 1%. Unfavorable foreign currency translation reduced year-over-year net sales by about 8%, or about $310 million.
Third-quarter 2015 reported net income from continuing operations was $433 million, and adjusted net income from continuing operations was $439 million, reportedly establishing a new third quarter record for the company.
“We have continued to deliver strong year-over-year growth in adjusted earnings per share, with results up 14%,” said Michael H. McGarry, president and CEO. “Our third-quarter performance was achieved despite the impact of unfavorable foreign currency translation, which was more than offset by the continued benefit of our acquisitions, including consistently strong performance of Comex, ongoing and aggressive cost-management actions and continued cash deployment.”
Performance Coatings segment net sales for the quarter were $2.24 billion, down less than 1% year-over-year. Acquisition-related sales, including Comex and several smaller acquisitions, reportedly added about $210 million to net sales, or about 9% over the prior-year quarter.
Organic sales of architectural coatings in the EMEA (Europe, Middle East and Africa) region were flat vs. the prior year. The sales volume of architectural coatings in the Americas and Asia-Pacific declined by a high-single-digit percentage, reportedly reflecting regional demand weakness in Canada and the transitory impact of inventory-management measures by most national retail customers and independent distributors in the U.S. and Canada.
Protective and marine coatings sales volumes improved slightly over the prior year, with protective coatings gains offset by weaker marine-related demand. Segment income was $379 million, up $34 million, or 10%, year-over-year, aided by acquisitions coupled with improved operating and cost performance.
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